Troubled NBK posts Sh1.18bn loss

March 31, 2016

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The bank has attributed the loss to heavy provisions and loan impairment charge which increased by Sh3.2 billion over the period/FILE

By MARGARET NJUGUNAH, NAIROBI, Kenya, Mar 31 – The National Bank of Kenya has announced a Sh1.18 billion loss after tax in its 2015 financial year results compared to the Sh1.203 billion profit before tax it made during a similar period last year.

The bank has attributed the loss to heavy provisions and loan impairment charge which increased by Sh3.2 billion over the period.

Just Wednesday, the bank issued a profit warning statement saying it expected it to fall by at least 25 percent.

This comes at a time when the bank’s CEO and other top managers have been sent on compulsory leave over governance issues.

The bank’s total assets grew to Sh125 billion during the period under review, up from 2014’s Sh122 billion.

On the other hand, the bank’s total liabilities jumped to Sh114.3 billion from Sh110.7 billion.

Its net loans and advances to customers stood at Sh67.8 billion up from ShSh65.6 billion.

Customer deposits on the other hand grew to Sh110.6 billion, up from 2014’s 104.7 billion.

Net interest income during the financial year declined from Sh6.7 billion to Sh6.4 billion. On the other hand, the total operating expenses stood at Sh11.1 billion up from Sh7.4 billion.

The board of directors did not recommend the payment of dividends.

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MARGARET NJUGUNAH I'm a business reporter based in Nairobi, Kenya. I'm passionate about feature stories on personal finance, development and technology.